Find out more: Coronavirus: what are your rights about going back to work? They are rare: the last time the UK had one was in the s, while the US has only experienced one before. After the worst recession on record last year, the UK economy did start growing again before shrinking again in November But the country avoided a double-dip recession. Find out more: Is now the time to start investing… and where should I put my money?
No one knows exactly what lies ahead and what the economic recovery will look like, particularly with the potential for more coronavirus strains and further lockdowns. Investors should prepare for a rocky ride. However, the stock market still offers the greatest prospect of growing wealth for those with a long-term view, especially as interest rates on savings accounts are meagre. Find out more: Should I buy stocks during the coronavirus crisis?
You could crystallise some hefty losses by selling out of your investments, depending on when you bought them, and potentially miss out on any recovery. The ongoing uncertainty over Covid is likely to amplify market volatility in the near future, so the key is to focus on longer-term goals and wait to ride out the inevitable bumps in markets.
Diversification is key for any investment strategy. Hold a mix of cash, fixed interest and shares. Spread across global markets too so you are not over exposed to downturns in any one area.
Make sure you are comfortable with your risk profile. This is the extent to which, in the pursuit of higher returns, you can stomach seeing some investments fall in value.
All investment platforms charge for running your money and there are typically fees for holding funds, as well as trading costs for funds and shares. Platform costs vary so you might save money by switching to one offering better value, boosting the value of your fund. Find out more here. It is very difficult to time the market, which is where you try to buy or sell investments at just the right moment in anticipation of prices going up or down.
When the stock market is falling and everyone is panicking, it will seem counterintuitive to keep investing. This means that to give your investments the best chance of outperforming, you need to keep investing regularly. You can do this by having a recurring transfer to your IRA account or brokerage account. Finally, it can seem silly to worry about your credit score when you are worried about the economy tanking. But what happens if you are ready to buy your first home in the midst of the recession?
It might actually be the perfect time to buy if prices begin to drop, but getting a loan during a recession is more complicated. Can you guess what lenders do during recessions? They only lend to the strongest borrowers.
The same goes if you are ready to refinance your student loans when rates are low. Even better, you can now freeze your credit for free. Whether you are worried about a recession or not, the good news is that these seven tips will help you build a solid financial foundation regardless of how the economy is doing. Taking precautionary measures to protect your finances can make a world of difference, so before the next financial downturn hits, make sure you take some — or all — of these steps to recession proof your finances.
Using credit as a safety net is a mistake that often haunts people for years after the fact. Tough times always last longer than you would think, so debts from these times are always greater than anticipated. So, they have to either increase their income or significantly downsize their lifestyle to afford repaying the debt at their current income level.
Answer: Find out right here. Carrying a debt burden is exactly that: a burden. And, during a recession when jobs are scarce and money is tight, those high debt payments will add only more stress to an already stressful situation. During a recession it can be difficult to cover day-to-day expenses — let alone debt repayments — and this can cause your debt to spiral out of control. Carrying high levels of debt is very risky, because a slight change in external factors could affect your ability to pay your debt.
While we adhere to strict editorial integrity , this post may contain references to products from our partners. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. We maintain a firewall between our advertisers and our editorial team.
Our editorial team does not receive direct compensation from our advertisers. Our goal is to give you the best advice to help you make smart personal finance decisions.
We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. You have money questions.
Bankrate has answers. Our experts have been helping you master your money for over four decades. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories.
0コメント